Central Asia's Vast Biofuel Opportunity

The current revelations of a International Energy Administration whistleblower that the IEA may have distorted essential oil forecasts under extreme U.S.

The current revelations of a International Energy Administration whistleblower that the IEA might have misshaped key oil projections under extreme U.S. pressure is, if real (and whistleblowers seldom step forward to advance their professions), a slow-burning thermonuclear surge on future global oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decrease from existing oil fields while overplaying the opportunities of discovering new reserves have the potential to toss federal governments' long-term preparation into mayhem.


Whatever the reality, increasing long term international needs seem certain to outstrip production in the next decade, specifically offered the high and increasing expenses of establishing new super-fields such as Kazakhstan's overseas Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will require billions in investments before their very first barrels of oil are produced.


In such a circumstance, additives and replacements such as biofuels will play an ever-increasing role by extending beleaguered production quotas. As market forces and increasing rates drive this technology to the forefront, one of the wealthiest prospective production locations has actually been absolutely overlooked by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a significant player in the production of biofuels if sufficient foreign financial investment can be acquired. Unlike Brazil, where biofuel is manufactured mainly from sugarcane, or the United States, where it is primarily distilled from corn, Central Asia's ace resource is a native plant, Camelina sativa.


Of the former Soviet Caucasian and Central Asian republics, those clustered around the coasts of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom because of record-high energy rates, while Turkmenistan is waiting in the wings as an increasing manufacturer of natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and fairly scant hydrocarbon resources relative to their Western Caspian next-door neighbors have actually mainly inhibited their ability to capitalize increasing global energy needs already. Mountainous Kyrgyzstan and Tajikistan remain largely reliant for their electrical needs on their Soviet-era hydroelectric facilities, however their heightened need to create winter season electrical power has resulted in autumnal and winter water discharges, in turn severely affecting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these three downstream nations do have however is a Soviet-era legacy of agricultural production, which in Uzbekistan's and Turkmenistan case was largely directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually ended up being a significant producer of wheat. Based upon my discussions with Central Asian government authorities, given the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have great appeal in Astana, Ashgabat and Tashkent and to a lower extent Astana for those sturdy investors going to bank on the future, specifically as a plant native to the area has currently shown itself in trials.


Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased clinical interest for its oleaginous qualities, with numerous European and American companies already investigating how to produce it in business quantities for biofuel. In January Japan Airlines undertook a historical test flight utilizing camelina-based bio-jet fuel, becoming the very first Asian provider to try out flying on fuel stemmed from sustainable feedstocks during a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month examination of camelina's operational performance capability and possible industrial practicality.


As an alternative energy source, camelina has much to recommend it. It has a high oil content low in hydrogenated fat. In contrast to Central Asia's thirsty "king cotton," camelina is drought-resistant and unsusceptible to spring freezing, needs less fertilizer and herbicides, and can be utilized as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia's major wheat exporter. Another reward of camelina is its tolerance of poorer, less fertile conditions. An acre planted with camelina can produce up to 100 gallons of oil and when planted in rotation with wheat, camelina can increase wheat production by 15 percent. A ton (1000 kg) of camelina will consist of 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's debris can be utilized for livestock silage. Camelina silage has a particularly attractive concentration of omega-3 fats that make it an especially fine animals feed prospect that is recently gaining recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and completes well against weeds when an even crop is established. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could be a perfect low-input crop appropriate for bio-diesel production, due to its lower requirements for nitrogen fertilizer than oilseed rape."


Camelina, a branch of the mustard household, is native to both Europe and Central Asia and barely a brand-new crop on the scene: archaeological proof shows it has been cultivated in Europe for a minimum of 3 centuries to produce both grease and animal fodder.


Field trials of production in Montana, currently the center of U.S. camelina research, showed a wide range of results of 330-1,700 lbs of seed per acre, with oil content varying between 29 and 40%. Optimal seeding rates have actually been figured out to be in the 6-8 pound per acre variety, as the seeds' small size of 400,000 seeds per lb can create issues in germination to attain an ideal plant density of around 9 plants per sq. ft.


Camelina's capacity could enable Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the nation's efforts at agrarian reform given that attaining self-reliance in 1991. Beginning in the late 19th century, the Russian government identified that Central Asia would become its cotton plantation to feed Moscow's growing fabric industry. The procedure was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also bought by Moscow to sow cotton, Uzbekistan in specific was singled out to produce "white gold."


By the end of the 1930s the Soviet Union had become self-sufficient in cotton; five years later it had actually become a significant exporter of cotton, producing more than one-fifth of the world's production, focused in Uzbekistan, which produced 70 percent of the Soviet Union's output.


Try as it might to diversify, in the lack of alternatives Tashkent remains wedded to cotton, producing about 3.6 million loads annually, which generates more than $1 billion while making up around 60 percent of the country's difficult currency income.


Beginning in the mid-1960s the Soviet federal government's regulations for Central Asian cotton production mostly bankrupted the area's scarcest resource, water. Cotton uses about 3.5 acre feet of water per acre of plants, leading Soviet coordinators to divert ever-increasing volumes of water from the region's 2 main rivers, the Amu Darya and Syr Darya, into ineffective irrigation canals, leading to the remarkable shrinkage of the rivers' last destination, the Aral Sea. The Aral, once the world's fourth-largest inland sea with an area of 26,000 square miles, has diminished to one-quarter its initial size in one of the 20th century's worst environmental disasters.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently explained camelina's service design to Capital Press as: "At 1,400 pounds per acre at 16 cents a pound, camelina would generate $224 per acre; 28-bushel white wheat at $8.23 per bushel would garner $230."


Central Asia has the land, the farms, the watering facilities and a modest wage scale in comparison to America or Europe - all that's missing out on is the foreign investment. U.S. investors have the cash and access to the proficiency of America's land grant universities. What is certain is that biofuel's market share will grow gradually; less specific is who will profit of establishing it as a viable concern in Central Asia.


If the current past is anything to go by it is unlikely to be American and European financiers, fixated as they are on Caspian oil and gas.


But while the Japanese flight experiments suggest Asian interest, American financiers have the scholastic competence, if they are ready to follow the Silk Road into establishing a new market. Certainly anything that lessens water usage and pesticides, diversifies crop production and enhances the great deal of their agrarian population will receive most cautious factor to consider from Central Asia's governments, and farming and veggie oil processing plants are not just much cheaper than pipelines, they can be built faster.


And jatropha's biofuel potential? Another story for another time.


allisonfairbai

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